One Mediator said that during his 'rough' equalization payments figures that It may be better to reduce the amount of equity I pull from the house to keep the difference in our RRSP's between my spouse and I intact ... because of tax implications and all I guess?
Question is this. If I had to give $20000 to equalize things ... coming out of the house equity this is easy ... you just subtract and be done with it.
However, the value of RRSP is different ... to get the NET amount of 20000 might require giving 25000 GROSS to get to the NET value after taxes have been taken into account? At least this is how I understand it?
So, is the mediator right in that it is better to give equalization payments from home equity as opposed to RRSP? Any tax advantages to the spouse making the payments if they are derived from RRSP pot?
Hubby
Question is this. If I had to give $20000 to equalize things ... coming out of the house equity this is easy ... you just subtract and be done with it.
However, the value of RRSP is different ... to get the NET amount of 20000 might require giving 25000 GROSS to get to the NET value after taxes have been taken into account? At least this is how I understand it?
So, is the mediator right in that it is better to give equalization payments from home equity as opposed to RRSP? Any tax advantages to the spouse making the payments if they are derived from RRSP pot?
Hubby
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